NASHVILLE, Tenn. -- Tennesseans are filing for unemployment in record numbers, yet a new report from the Sycamore Institute says the state's unemployment benefits and related employer taxes are among the lowest in the nation.

As the coronavirus pandemic continues with a potential second wave expected, more families are relying on unemployment insurance to stay financially afloat. Sycamore policy director Mandy Pellegrin said COVID-19 has left many wondering what the future holds for the state's system.

"Over the last two decades, Tennesseans have been less likely than other out-of-work Americans in other states to get unemployment benefits," Pellegrin said. "In other words, our recipiency rate is fairly low. And at the same time that that's been going on, the value of the benefits that Tennesseans receive from the program has fallen."

According to the report, Tennessee's unemployment insurance program provided benefits to around 21% of unemployed workers during the first quarter of 2020. The state currently ranks in the bottom eight among states for the number of out-of-work residents who are receiving benefits.

Pellegrin said policymakers might start by taking a look at how Tennessee's unemployment trust fund is supported. Right now, the program gets padded with cash during good times, and is paid out to people when the economy goes downhill.

"Of course, the way the taxes are structured, like they are in nearly every state, is that when your funds get really large, the taxes actually go down," she said. "So, there are some questions about is that actually the best way to to do it."

The additional $600 per week in federal benefits some Tennesseans are receiving through the CARES Act is slated to run out at the end of July. Pellegrin noted it remains uncertain what effect that might have on the economy.

"At the same time, policymakers can't control what people choose to do if they do fear for their health," she said. "So, people (are) choosing to stay home and not go to their local businesses because they fear they might get or spread the virus. "

More than 600,000 people in Tennessee have applied for unemployment benefits since the start of the COVID-19 pandemic.


get more stories like this via email

North Dakota has returned a significant portion of the rental assistance provided by the federal government in the pandemic, and groups working closely with struggling households fear the state is letting much-needed aid go to waste.

The state spent roughly $15 million of the aid through its Rent Help program after policymakers moved to keep people from being evicted during the crisis.

But North Dakota has now sent back about $150 million, citing a lack of flexibility in meeting spending guidelines.

Terry Hanson, executive director of the Grand Forks Housing Authority, is among those who say it has been hard for renters to take advantage of the aid.

"And I think that the state is perhaps trying too hard to document whether or not the funds are needed," Hanson asserted.

He also feels there was not enough outreach, although he noted the state has taken recent steps to boost the flow of aid.

Hanson noted even though a lot of money was left, not everyone who needs it is being reached. He pointed to places like Grand Forks, with a poverty level nearing 20%. North Dakota officials argued the treasury required unspent money to be returned, so it can go to other states that need it more.

According to the latest Census Household Pulse Survey, 44% of North Dakota respondents said they are likely to face eviction or foreclosure in the next two months. Hanson emphasized it is important for the state to remember the relief can be used by applicants in different ways.

"It doesn't have to just cover rent that's not paid," Hanson stressed. "If I was an applicant today, I could say I need help paying the next 12 months' rent."

North Dakota's rental-aid program also faced backlash for getting money to some households after they were evicted. Hanson acknowledged it speaks to the state being unprepared for the rollout, and failing to recognize the need.

Slow distribution of federal pandemic rental relief has been reported in many other states. North Dakota said it still has resources to support housing stability for an estimated 15,000 renters over the next couple of years.

Support for this reporting was provided by The Carnegie Corporation of New York.

During Wednesday's State of the State address, Gov. Mike Parson discussed his priorities for Missouri in the next year, including the supplemental state budget proposal.

Missouri has been allocated billions of dollars in federal funds, first from the American Rescue Plan and then from the Infrastructure Investment and Jobs Act.

Parson's proposal includes, among other measures, funding Medicaid expansion and a 5.5% pay raise for state employees.

Richard von Glahn, policy director for Missouri Jobs with Justice, said both are long overdue and will make a big difference for many families.

"There's a lot of federal funding that will come in that will support Missouri's health-care providers and hospitals across the state," von Glahn pointed out. "More importantly, it'll provide insurance coverage to hundreds of thousands of Missourians."

He added Missouri state worker pay has ranked low in the last couple of decades, and some positions have extremely high turnover rates. He argued it is time state workers -- many of whom have been essential workers during the pandemic, making sure services are available -- get recognition for the value of their work.

Von Glahn added while the pay raise for state workers is a step in the right direction, it is important to not stop there. He noted the governor has refused to bargain with the state employees union for several years.

"I think it would be important for lawmakers to see this as an initial investment," von Glahn asserted. "And to frankly work with the representatives of the employees to negotiate a long-term vision for state employees and state compensation that rewards them for the hard and critical work that they do."

At the State of the State, Parson also outlined his vision for spending $2 billion on public schools, $722 million to keep child-care centers open, almost $22 million for raising teacher salaries and more than $50 million for public colleges and universities.

As Gov. Larry Hogan revealed his proposed Fiscal Year 2023 budget in Annapolis yesterday, the People's Commission to Decriminalize Maryland announced its legislative priorities for the 2022 legislative session.

The commission is made up of representatives of 28 advocacy groups mostly based in Maryland.

Christopher Dews, senior policy advocate for the Job Opportunities Task Force, said the commission has a focus on five bills this session he contended would help decriminalize poverty. Among those include eliminating the use of credit history and ZIP code as factors in auto-insurance rates, which disproportionately impacts communities of color.

"That's going to greatly lower the cost and allow more returning citizens and formerly incarcerated people and those who are simply poor to be able to afford auto insurance so that they can get in their cars and go to work," Dews asserted. "Those two factors have nothing to do with an individual's ability to drive."

A bill introduced last week by Del. Alonzo Washington, D-Prince George's County, would prohibit the use of such information in establishing auto-insurance premiums. A hearing is scheduled for today in the House Economic Matters Committee.

Jason Szanyi, deputy director of the Center for Children's Law and Policy, said the commission also supports Senate Bill 165, which would change Maryland's current system of transferring youths to adult court. The state requires children as young as 14 to be automatically prosecuted in adult court for 33 criminal offenses.

"Many of those kids end up getting transferred back to the youth justice system but only after they've experienced the harm of incarceration and being charged as an adult," Szanyi explained. "A vast majority of those kids are Black and brown youths."

A companion bill was introduced this week in the House by Del. Charlotte Crutchfield, D-Montgomery County. Senate Bill 165 will receive a hearing in the Senate Judicial Proceedings Committee Jan. 27. Other priorities of the commission include cannabis legalization and expungement reform.